Vouchers are also known as Audit Evidence. Business transactions are recorded in the books of accounts on the basis of written proof.
Voucher is a piece of paper that shows the details relating to the items appearing in accounting records. A cash memo, bill or invoice and similar other papers are considered-as vouchers.
The other papers include salary book, wages sheets, credit note, debit note, insurance policy, credit advice debit advice, pass book, salesmen statements, agreements, dividend warrant, lease deed, minute book, job cards, articles of association opening journal entries, share certificate, debenture certificate, etc.
See Also: Types of Ledger Used in Auditing
All such vouchers are the basis of entries in the accounting books. The original vouchers are called primary vouchers. The duplicate or carbon copies are’ known as secondary vouchers.
What is a Voucher
- W. Holmes says that a voucher is -any documentary evidence in support of a transaction.
- Joseph Lancaster says that a voucher is any documentary evidence by which the accuracy of books entries may be substantiated.
- Ronald A. Irish says that a voucher may be a receipt, invoice, an agreement, and a written requisition slip or in short any suitable written evidence, which confirms a written transaction.
Characteristics of Vouchers
VOUCHER IS EVIDENCE
The essential feature or voucher is that it is used as evidence. The proof of dealing is available in the shape of a piece of paper. This voucher is an evidence for future reference.
WRITTEN FORM
The essential characteristic of a voucher is that it is always in written form. The oral or spoken words cannot become voucher. The piece of paper in printed or written form is necessary.
ENTRY IN BOOKS
The entry in the books of accounts is based on the voucher. It is the quality of voucher that entries are possible with its help. The entry is not possible when there is no voucher.
SHOWS NATURE OF TRANSACTION
The feature of a voucher is that it shows the nature of transactions done by the management. The purchase, sale, receipt, payment, expenses are transactions which produce some sort of voucher,
BUSINESS NAME
The vouchers are always in the name of the business. The name of manager or employee is not acceptable on the voucher. The vouchers are received in the name of business concern only,
DATE OF VOUCHER
The date is written on the face of the voucher. It shows the date of the transaction. The date must relate to the current year. It is essential for matching expenses with revenue.
REVENUE STAMPS
The essential feature of a voucher is that stamps are affixed under the Stamp Act. It is a legal requirement.
SIGNATURE OF MANAGER
The voucher bears the signature of the seller on its face. The buyers approve the voucher. The manager can put his signature on the face or back for approval of dealings.
AMOUNT IN WORDS AND FIGURES
The feature of a voucher is that it carries the number of goods and services exchanged. ‘The amount is stated in figures and words.
ACCOUNTING YEAR
The voucher must relate to the accounting year. The transactions are divided into different periods on the basis of date. The performance of one accounting year can be determined.
GENUINE VOUCHER
The voucher must be genuine. It must some sort of transactions relating to nature of the business. The consent management is essential. The original copies are genuinely acceptable.
Different Types of Vouchers
PRIMARY
The original printed or written piece of paper relating to the business transaction is called primary voucher. The cash memo, invoice or bills are primary vouchers.
SECONDARY
Duplicate or secondary evidence may be collected in the absence of original vouchers. It is called secondary voucher, like duplicate bills, carbon copies and copy of the resolution.
See Also: Different Types Of Audit of Journals
Examples of Vouchers
- CASH RECEIVED: Counterfoil, carbon copies of receipts issued, correspondence, and carbon copies of the contract made
- CASH PAID: Invoices, bills, salary register, wages book copies of the agreement, and correspondence
- PURCHASES: Copies of order letters, invoices, correspondence, and goods inward book
- PURCHASE RETURN: Credit note, goods outward books, letters, and correspondence
- SALES: Order letters received, goods supplied bills, goods outward book and other correspondence or letters
- SALES RETURNS: Credit notes, goods inward book, letters, and correspondence
- BILLS OF EXCHANGE: Cash books entries and bills on hand
- ASSETS PURCHASES: Bills, invoices, deeds, agreements, correspondence, cash memos and affidavit
- BANK CHARGES: Debit advice, standing orders, and letter of intention
- OTHERS: Share warrant, insurance policy, letter of credits, bills of entry, traveling ticket, minute book, and articles of association etc
